San Francisco Budget and Appropriations Committee Meeting - May 24, 2023
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San Francisco Budget and Appropriations Committee Meeting - May 24, 2023
The Budget and Appropriations Committee, chaired by Supervisor Connie Chan, met on May 24, 2023, to hear two major items: the nine-month budget status report for FY2022-2023 and a hearing on city investments in the Lakeview, Oceanview, Merced Heights, and Ingleside (OMI) communities from 2013 to 2023. The committee also received public testimony and took votes on both items.
Public Comments & Testimony
- Item 1 (Budget Status Report): Francisco DeCosta criticized the committee as "one of the worst" he had watched. David Pilpel praised the report's detail but requested greater consistency in fund naming across documents.
- Item 2 (OMI Investments): Multiple speakers expressed support for increased investment in the OMI community. Renard Monroe (Youth First) emphasized the need for continued resources and correct neighborhood naming. Zelia Fitzpatrick (Good Rule) requested clarity on how resources are tracked and allocated. EJ Jones (neighbors and community stakeholders) noted that homegrown programs are at capacity and need more support. Monique Gidry (African American Early Childhood Educators) asked about funding distribution, timelines, and oversight for early childhood grants. Mary Evelyn Thomas (provider) questioned where mental health services are located. Gwendolyn Brown (OMI Job Center) stated that departmental investments are low compared to documented need. Naeema Charles (Children's Council) highlighted high poverty rates and urged investment in families rather than tax breaks for businesses.
Discussion Items
Item 1: Nine-Month Budget Status Report (FY2022-2023)
Carol Lu, Citywide Revenue Manager from the Controller’s Office, presented the report. Key highlights:
- The projected ending fund balance is $209.3 million, a $36.3 million improvement from the March forecast.
- The two-year budget deficit is reduced from $780 million to $744 million.
- Revenue is $30 million below budget overall but $26 million better than prior projections.
- Transfer tax is very weak: forecast at $174 million vs. budget $390 million, down from $520 million last year, due to rising interest rates and work-from-home trends.
- Property tax is $86.5 million above budget, driven by supplementals and higher assessed values.
- FEMA reimbursements are delayed; only $23.4 million expected this year vs. budget $243 million, but future payments are still anticipated.
- The overpaid executives tax (new) is expected to bring in $190 million this year, including 1.5 years of collections, with a base of ~$100 million per year going forward.
- Departmental savings are largely from vacancies, especially in Human Services Agency ($13 million in expenditure savings) and the Mayor’s office ($2.3 million).
- The Department of Public Health shortfall ($6.9 million) from Laguna Honda Hospital revenue is covered by a reserve.
Supervisors Chan, Safai, and Ronan asked questions about property tax trends, transfer tax volatility, FEMA timing, vacancy-driven savings, and the overpaid executive tax. The committee then heard public testimony and voted to continue the hearing to the call of the chair.
Item 2: City Investments in OMI Communities (2013-2023)
Supervisor Safai, the hearing sponsor, introduced the item as a follow-up to a 2021 hearing. Seven city departments presented:
- Human Services Agency (HSA): Susie Smith reported that HSA serves about 42,000 clients in OMI zip codes (17% of caseload) with $34 million annually, plus $91 million in leveraged state/federal funds. Programs include CalFresh, Medi-Cal, IHSS, and community food programs. Food programs serve 4,000 residents with $4.5 million. A new mobile office will launch.
- Department of Early Childhood (DEC): Ingrid Musquita noted that enrollment data in OMI is limited due to administrative changes. Funding for a Family Resource Center in OMI is about $1.3 million. Efforts target building child care capacity, especially for Black providers.
- Department of Children, Youth and Their Families (DCYF): Maria Su estimated investments in OMI at $3.5 million in FY2022-2023, up from $1.3 million in 2013-2014, using a prorated methodology. Programs include summer learning, youth workforce, and mental health.
- Office of Economic and Workforce Development (OEWD): Kate Sofis reported over $1 million in community economic development investments (e.g., Good Rule hub, COVID relief grants), $141,000 in small business grants, and over $2 million for workforce programs including the OMI Job Center (opened 2019) and a satellite center.
- Department of Public Health (DPH): Halley Hammer presented data showing that residents of OMI zip codes represent 15% of primary care patients, 6% of behavioral health clients, and 21% of WIC participants. Services include the OMI Family Center (mental health clinic) and various outreach programs.
- Mayor’s Office of Housing and Community Development (MOHCD): Brian Chu highlighted service investments of about $600,000 annually, with capital projects such as the public gateway project and affordable housing at Randolph/Hearst. Future RFP for services planned in 2024.
- San Francisco Public Library: Michael Lambert reported $6.8 million annually to operate three branch libraries in OMI (Ocean View, Merced, Ingleside). A new Ocean View Branch Library is a top priority, with $15 million budgeted in FY24 and $4.8 million in FY25, but the site selection (Brotherhood Way) remains under discussion.
Supervisors Safai, Walton, and Chan asked questions about food security, child care capacity, summer programs, capacity building for local nonprofits, and the library site. A heated exchange occurred between Supervisor Safai and Library Director Lambert over the Brotherhood Way site, with Safai accusing the library of delaying the project despite community consensus. Lambert maintained that the site is still under consideration and that the library is proceeding with budget building and community engagement.
Key Outcomes
- Item 1: Motion to continue the hearing to the call of the chair passed unanimously (5-0).
- Item 2: Motion to file the hearing passed 4-0 (Vice Chair Mandelman absent).
The meeting was adjourned after the two items.
Meeting Transcript
Good afternoon. You're unmuted. Good afternoon. The meeting will come to order. Welcome to the May 24, 2023 meeting of the budget and appropriation committee. I am Supervisor Connie Chan, chair of the committee. I'm joined by Supervisors Hillary Ronin and Shaman Walton, hopefully shortly by Vice Chair Rafael Mendelman and Supervisor Asha Safayi. Our clerk, it's Brent Halipa. I would like to thank Suze Yinos from SFGov TV for broadcasting this meeting. Mr. Clerk, do you have any announcement? Thank you, Madam Chair. Just a friendly reminder for those in attendance to please make sure to silence all cell phones and electronic devices as not to interrupt our proceedings here in the chamber. The Board of Supervisors and his committees are convening hybrid meetings at law in person attendance and public comment while still providing remote access and public comment via telephone. Public comment will be taken on each item on this agenda. Those attending in person will be allowed to speak first, and then we will take those waiting on the telephone line. For those watching remotely and streaming through sfgovtv.org, the public comment call in number streaming across the screen. And when connected, you'll be hear the meeting discussions, but you'll be muted and in listing mode only. When your item of interest comes up in public comment, it's called. Those joining us in person should line up to speak, and those on the telephone should dial star three to also be added to the speaker line. If you're on your telephone, please remember to turn down your TV and all listening devices you may be using. And each speaker will be allowed up to two minutes to speak unless otherwise stated. Alternatively, you may submit public comment and writing in either of the following ways. He mail them to myself, the budget and appropriations committee clerk at B R E N T dot J A L I P A Hat SFGO V dot O R G. If you submit public comment via email, it will be forwarded to the supervisors and also included as part of the official file. He may also send your written comments via U.S. Postal Service to our office and city hall. That's one, Dr. Carlton B. Goodlick Place, Room 244, San Francisco, California, 94102. And thank you, Madam Chair. That concludes my announcements. Thank you, Mr. Clerk. And before we begin, I would like to also um state that we're limiting public comments in this con uh committee to one minute as well. Thank you. And uh please call item number one. Yes, item number one is a hearing to receive updates on the nine month budget uh status report for fiscal year 2022 to 2023. Members of the public who wish to provide public comment on this hearing should call 415 655 000 one. Today's meeting ID is 2595 7659214. Then press pound twice. And if you haven't already done so, please dial star three lineup to speak. Hey, prompt will indicate that you've raised your hand and what and please wait until the system indicates you have been unmuted and you may begin your comments. Madam Chair. Thank you, Mr. Clerk. And today we have Carol Lu, Citywide Revenue Manager from the controller's office. Thank you so much for being here. Carol Lou, Citywide Revenue Manager. Thanks for the opportunity to speak to the nine-month update.
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